Choosing a home insurance policy is not simply a matter of finding the cheapest quote. Two policies can have noticeably different premiums while offering very different levels of cover, excesses, exclusions and limits.

For UK homeowners and renters, the right policy depends on what needs protecting, how the property is used, the value of your belongings and the risks that are relevant to your circumstances. Buildings insurance generally protects the structure and permanent fixtures of a property, while contents insurance protects possessions inside it. Some people buy both together, while others arrange them separately.

Before buying a policy, it is worth checking exactly what is included, what is excluded and how much you would have to pay yourself if something went wrong. A policy that looks inexpensive at first may not provide enough protection for your home or belongings.

This guide explains the main things to check before choosing home insurance in the UK, including cover levels, rebuild costs, contents values, excesses, exclusions, valuable items, optional extras and policy conditions.

Start by Working Out What You Actually Need to Insure

The first question is not “Which insurer is cheapest?”

It is “What do I actually need to protect?”

If you own a house, you may need buildings insurance as well as contents insurance. If you rent, buildings insurance will normally be the landlord’s responsibility, while contents insurance can protect your personal belongings.

If you own a leasehold flat, the arrangement can be different again. Buildings insurance may already be organised for the whole building, sometimes through the freeholder or management company.

Understanding your position before requesting quotes can prevent you from paying for cover you do not need or overlooking cover that you do.

Check Whether You Need Buildings Insurance, Contents Insurance or Both

Buildings Insurance

Buildings insurance is designed to cover the physical property and certain permanent fixtures and fittings.

This can include parts such as:

• roof
• walls
• floors
• windows
• doors
• fitted kitchens
• bathroom fixtures

The exact definition depends on the policy.

If you have a mortgage, your lender will normally require buildings insurance as a condition of the mortgage. MoneyHelper explains that while buildings insurance is not generally a legal requirement, mortgage lenders typically require it.

Contents Insurance

Contents insurance protects possessions such as:

• furniture
• clothing
• televisions
• computers
• kitchen equipment
• personal belongings
• jewellery

Renters may choose contents insurance because their landlord’s buildings insurance generally does not cover their personal possessions.

You can sometimes purchase buildings and contents insurance together as a combined home insurance policy.

Check the Level of Buildings Cover

One of the most important figures on a buildings policy is the amount available to rebuild the property.

This is not normally the same as the property’s market value.

For example, a fictional property might have a market value of £350,000 but have a lower estimated rebuilding cost. The market price reflects factors such as the location and demand for the property, while rebuilding cover is concerned with the cost of reconstructing the building after a serious insured event.

MoneyHelper advises homeowners to make sure their buildings insurance is sufficient to cover the cost of rebuilding the property.

When checking your policy, look at how the insurer calculates the buildings sum insured and whether the amount is appropriate for your property.

If your home has unusual construction, extensions or other special features, the calculation may require additional care.

Check Your Contents Sum Insured

Contents insurance has a different calculation.

You need to consider how much it would cost to replace the belongings you want covered.

Many people underestimate this figure because they think about their most expensive possessions rather than the combined value of everything in the home.

Try going room by room.

In the living room, consider the television, sofa, furniture, games console, lamps and other belongings.

In the kitchen, consider appliances, cookware and smaller electrical items.

In bedrooms, include clothing, shoes, bedding, furniture and personal possessions.

Don’t forget garages, sheds and loft spaces if the policy covers them.

MoneyHelper recommends calculating the replacement value of your possessions when deciding how much contents cover you need.

A policy with an unnecessarily low contents limit may leave you underinsured after a major claim.

Look Carefully at Single-Item Limits

The total contents limit is not the only figure that matters.

Some policies also have a maximum amount they will pay for one individual item.

Imagine a policy provides £50,000 of contents cover but has a £1,500 single-item limit.

If you own a £4,000 piece of jewellery, you cannot assume that the £50,000 overall limit means the full value is covered.

You may need to tell the insurer about the item separately.

MoneyHelper notes that expensive possessions such as jewellery may need to be listed separately when they exceed the policy’s single-item limit.

Check these limits for items such as:

• jewellery
• watches
• artwork
• cameras
• musical instruments
• bicycles
• computers
• high-value collectibles

Keep receipts, valuations or other evidence that can help establish ownership and value.

Check What Events Are Covered

Do not stop reading after seeing a list of covered events.

Look at the actual wording.

Home insurance can commonly provide protection against events such as fire, theft, storm damage, flooding and certain types of water damage, but the precise cover varies between policies.

For example, “water damage” does not necessarily mean every type of leak is covered.

The insurer may distinguish between sudden damage caused by an insured event and gradual damage caused by poor maintenance or deterioration.

If a particular risk concerns you, check specifically how the policy treats it.

Pay Attention to Flood Cover

Flood risk deserves particular attention if the property is in an area that has experienced flooding or could be vulnerable to it.

Do not assume that all policies have identical flood terms.

Check:

• whether flood damage is covered
• the flood excess
• exclusions
• limits
• conditions that apply to previous flooding
• whether the property needs specialist cover

If a property has a known history of flooding, tell the insurer accurately when obtaining a quote.

Do not omit information simply because you are concerned it might increase the premium.

Accurate information is important when arranging insurance.

Check Storm and Weather-Related Cover

Storm damage can affect roofs, tiles, fences, windows and other parts of a property.

However, insurance does not necessarily cover every problem that occurs during bad weather.

For example, damage caused by gradual deterioration can be treated differently from sudden damage caused by a qualifying storm.

Read the relevant section of the policy and check any conditions concerning the property’s condition and maintenance.

This can be particularly important for older properties.

Understand the Excess

The excess is the amount you agree to pay towards an accepted claim.

For example, suppose a covered claim is worth £2,000 and the policy has a £250 excess.

Subject to the policy terms, you would normally be responsible for the first £250 and the insurer would cover the remaining eligible amount.

Some policies can have different excesses for different types of claims.

For example, subsidence may have a different excess from a standard contents claim.

MoneyHelper explains that choosing a higher excess can reduce the premium, but it also means you will contribute more if you make a claim.

Before choosing a high excess, ask yourself a simple question:

Could I comfortably pay this amount after an unexpected event?

If the answer is no, a slightly higher premium with a more manageable excess may be worth considering.

Check the Policy Exclusions

Exclusions are just as important as the list of covered events.

An exclusion is a situation, type of damage or circumstance where the insurer will not provide cover under that part of the policy.

Common exclusions or limitations can involve:

• normal wear and tear
• poor maintenance
• gradual deterioration
• deliberate damage
• certain unoccupied-property situations
• some forms of pest damage
• particular weather-related circumstances

MoneyHelper notes that normal wear and tear and deliberate damage are generally not covered by standard home insurance.

Do not assume an insurer will cover a problem simply because it causes expensive damage.

Insurance generally responds to specified insured events, not every cost associated with owning a property.

Check Whether Accidental Damage Is Included

Accidental damage cover can provide protection for certain accidents that may not be covered by a standard policy.

For example, accidental damage to a fixture or an item in your home could potentially be covered if the appropriate protection is included.

However, accidental damage is not automatically included in every policy.

It may be available as an optional extra.

MoneyHelper explains that accidental damage cover can often be added to home insurance for an additional cost.

Before paying for it, consider which risks are relevant to your household.

Check Whether Your Possessions Are Covered Away From Home

Standard contents insurance mainly concerns belongings kept at your home.

If you regularly take valuable items outside the property, you may need personal possessions cover.

This can potentially protect items such as:

• mobile phones
• laptops
• cameras
• jewellery
• bicycles

The exact protection varies.

In particular, check whether the policy covers accidental loss as well as theft or accidental damage.

For example, losing a phone on public transport is not necessarily treated in exactly the same way as having it stolen during a burglary.

MoneyHelper identifies personal possessions cover as an optional feature that can extend contents protection outside the home.

Check How Valuable Items Are Treated

High-value belongings deserve special attention.

Suppose you have:

• a valuable watch
• an engagement ring
• an expensive camera
• a bicycle
• a collection of artwork

Check the policy’s individual-item limits and whether the items need to be specified.

You should also understand whether the insurer uses a replacement-value approach or another method when settling claims.

Keep relevant documentation.

Receipts are useful, but they are not the only possible evidence. Photographs, valuations and other records can also help demonstrate what you owned and its condition.

Check Whether the Policy Covers Alternative Accommodation

Imagine your home suffers serious damage and becomes temporarily uninhabitable.

Where included, alternative accommodation cover can help with certain additional living costs while repairs take place.

This can be an important feature because a major claim may involve more than the cost of repairing the building.

Check:

• whether alternative accommodation is included
• what circumstances trigger it
• whether there is a monetary limit
• whether there is a time limit
• who can use the accommodation
• whether additional living expenses are subject to other conditions

Do not assume every policy provides identical protection.

Check Home Emergency Cover Separately

Home emergency cover is sometimes offered alongside home insurance.

It can provide assistance for certain urgent problems, depending on the policy.

Examples can include particular boiler, plumbing, heating or electrical emergencies.

However, home emergency cover is not the same thing as buildings insurance.

A standard buildings policy may cover damage resulting from an insured event without necessarily paying for every emergency repair.

If you are considering home emergency cover, check:

• what emergencies qualify
• call-out limits
• labour limits
• parts limits
• exclusions
• waiting periods
• whether the boiler or appliance has age restrictions

The additional cover may be useful for some households but unnecessary for others.

Check What Happens If Your Home Is Unoccupied

Insurance policies can have special conditions when a property is left unoccupied for an extended period.

This might become relevant if you:

• go on a long holiday
• temporarily move elsewhere
• inherit a property
• leave a property empty while selling it
• renovate a property before moving in

Do not assume that your normal policy operates without change during a lengthy unoccupied period.

Tell the insurer about circumstances that could affect the policy and check the applicable conditions.

Be Accurate When Applying for Insurance

When obtaining a quote, provide accurate information.

This can include details about:

• the property
• occupancy
• construction
• security
• previous claims
• renovations
• business use
• other relevant circumstances

It may be tempting to give an answer that produces a cheaper quote.

That can create serious problems later.

If information provided to the insurer is inaccurate or incomplete, it could affect the validity of the policy or a future claim.

The FCA expects insurance firms to treat customers fairly and provides regulatory requirements concerning insurance products and claims handling.

If you are uncertain how to answer a question on an application, ask the insurer rather than guessing.

Check Whether Working From Home Changes Anything

Working from home is common, but the effect on insurance depends on what you do.

Occasional administrative work on a laptop may be treated differently from running a business from your home, storing business stock or having customers regularly visit the property.

If you operate a business from home, tell the insurer and check whether your standard policy provides appropriate protection.

Your home insurance may not automatically cover business equipment, stock, professional liabilities or other business-related risks.

Do not assume that because something happens inside your home it is automatically covered by ordinary household insurance.

Check How Your Belongings Are Valued

Contents policies can use different approaches to settling claims.

Some policies may provide new-for-old cover for eligible items, subject to conditions and exclusions. Other policies may take depreciation into account.

This distinction can affect the amount you receive following a claim.

For example, replacing an old television with a comparable new model could produce a different settlement from one based on the current value of the old television.

Read the policy wording to understand how claims are calculated.

Check Whether You Have an Appropriate Rebuild Cost

One of the most common misunderstandings about buildings insurance is confusing the property’s sale price with its rebuild cost.

Suppose a fictional house is worth £400,000 on the property market.

That does not necessarily mean it would cost £400,000 to rebuild the physical structure.

The market value can reflect land value and location, whereas the rebuild figure focuses on the cost of reconstruction.

MoneyHelper recommends calculating the cost of rebuilding the property when deciding the appropriate level of buildings cover.

If you have recently extended or significantly altered the property, review whether the insurance information still reflects the property accurately.

Check the Policy Conditions

A policy may contain conditions that you need to follow for cover to apply.

These can involve matters such as:

• property security
• locks
• alarms
• maintaining the property
• keeping windows and doors secure
• notifying the insurer about changes
• taking reasonable precautions
• unoccupied periods

Policy conditions are easy to overlook because they can appear less important than the premium.

They can become extremely important during a claim.

Read the policy documents carefully and make a note of any requirements that apply to your household.

Compare the Overall Policy, Not Just the Premium

When comparing home insurance, put the policies side by side.

For each one, consider:

A policy costing £20 less per year is not necessarily better if it has a much higher excess or excludes cover you actually need.

Price matters, but protection matters too.

A Simple UK Example

Imagine two hypothetical contents policies.

Policy A costs less but has a higher excess, a relatively low single-item limit and no cover for accidental loss outside the home.

Policy B costs more but has a lower excess, a higher single-item limit and personal possessions cover.

A person who rarely carries valuable items outside the home might place less value on the additional protection in Policy B.

Someone who regularly travels with an expensive laptop or camera might consider the additional cover more relevant.

Neither policy is automatically better for everyone.

The important lesson is to compare the protection against your actual circumstances rather than choosing based solely on the annual premium.

Common Home Insurance Mistakes to Avoid

Choosing the Cheapest Quote Automatically

Price is important, but a low premium can come with higher excesses, lower limits or fewer benefits.

Underestimating Your Contents

Replacing an entire household can cost considerably more than expected.

Forgetting High-Value Items

Check the individual-item limits for jewellery, electronics and other expensive possessions.

Ignoring the Excess

A cheap policy with an unaffordable excess may not be useful when you need to claim.

Assuming Everything Is Covered

Insurance policies contain exclusions and conditions.

Failing to Update Your Insurer

Major changes to your property or circumstances may need to be reported.

Giving Incorrect Information

A cheaper quote is not worth creating problems with a future claim.

Not Checking Leasehold Arrangements

You may already have buildings insurance through a block policy.

Comparing Only the Headline Rate

Compare the complete policy, including fees, excesses, limits and optional extras.

A Practical Checklist Before You Buy

Before accepting a home insurance policy, check the following:

1. Identify what needs to be insured.
Decide whether you need buildings insurance, contents insurance or both.

2. Calculate your contents value.
Estimate the replacement cost of your belongings.

3. Check the buildings rebuild figure.
Make sure the amount reflects the property’s rebuilding needs rather than its market value.

4. List valuable items.
Check single-item limits and declare items where required.

5. Read the exclusions.
Pay particular attention to risks that matter to your property.

6. Check the excess.
Make sure you could afford it if you had to make a claim.

7. Look at optional cover.
Consider accidental damage and personal possessions cover if relevant.

8. Check unoccupied-property rules.
This is particularly important if the home will be empty for an extended period.

9. Give accurate information.
Never deliberately change information simply to obtain a lower quote.

10. Compare the complete policy.
Look at cover, limits, exclusions and price together.

Questions to Ask Before Choosing Home Insurance

Before buying, it can help to ask:

• What exactly does the buildings section cover?
• What exactly does the contents section cover?
• What are the main exclusions?
• What is the standard excess?
• Are there higher excesses for certain claims?
• What is the single-item limit?
• Do valuable items need to be listed separately?
• Is accidental damage included?
• Are belongings covered outside the home?
• Is alternative accommodation included?
• What happens if the property is left unoccupied?
• Does working from home affect the policy?
• How are claims settled?
• Is the buildings sum insured based on a suitable rebuild cost?
• Are there security or maintenance conditions I need to follow?

These questions can reveal differences between policies that are not obvious from the headline price.

Frequently Asked Questions

What is the most important thing to check on home insurance?

There is no single feature that matters for every household. Start by checking whether the policy provides enough buildings and contents cover for your circumstances. Then review exclusions, excesses, individual-item limits and important optional features. A policy should provide protection that is appropriate for the property and possessions you actually have, rather than simply being the cheapest available quote.

Is the cheapest home insurance policy usually the best?

Not necessarily. A lower premium can come with a higher excess, lower contents limits, fewer optional features or more exclusions. When comparing policies, consider the total cost and the level of protection. A slightly more expensive policy may provide useful cover that would otherwise be expensive to arrange separately. However, additional cover is not automatically worthwhile if it protects risks that are not relevant to your circumstances.

How do I know how much contents insurance I need?

Estimate the cost of replacing the belongings you want to insure. Going room by room can make the process easier. Include furniture, clothing, electronics, appliances, jewellery and other possessions. Also check the policy’s single-item limit because the total contents sum insured does not necessarily mean an expensive individual item is fully covered. MoneyHelper recommends calculating the replacement value of your household contents.

Should I choose a higher excess to reduce my premium?

A higher excess can reduce an insurance premium, but it means you will contribute more towards an accepted claim. Whether this is appropriate depends on your circumstances. Before selecting a higher excess, consider whether you could comfortably find that amount if your home or possessions suffered significant damage. The cheapest premium is not necessarily the most practical choice if the excess would be difficult to afford.

Does home insurance cover accidental damage?

Not always. Standard home insurance can cover specified insured events, while accidental damage may be included in some policies or available as an optional extra. Check exactly what the insurer means by accidental damage and whether it applies to buildings, contents or both. Also review any limits and exclusions before paying extra for the feature.

Do I need buildings insurance if I live in a leasehold flat?

It depends on how the building is insured. In many leasehold arrangements, the freeholder or management company arranges buildings insurance for the whole building, with the cost potentially reflected in service charges. Check your lease and ask the relevant managing agent or freeholder before arranging separate buildings cover. You may still need contents insurance for your own possessions.

Should I tell my insurer if I start working from home?

If your work involves more than ordinary personal use of your home, it is sensible to check with your insurer. Running a business, storing stock, receiving customers or using specialist business equipment can create insurance requirements that ordinary household cover may not address. Do not assume that standard contents insurance automatically covers every business-related loss simply because the equipment is kept at home.

Final Thoughts

Choosing home insurance requires more than comparing annual premiums.

Start by deciding whether you need buildings insurance, contents insurance or both. Then work out an appropriate rebuild figure for the property and a realistic replacement value for your belongings.

After that, look closely at the details that are easy to overlook: excesses, exclusions, single-item limits, accidental damage, personal possessions cover, alternative accommodation and policy conditions.

Pay particular attention to anything unusual about your home or circumstances, including flood risk, previous claims, valuable possessions, leasehold arrangements, extended periods when the property may be empty or business use from home.

Most importantly, provide accurate information when obtaining a quote. Saving a little money on the premium is not worthwhile if incorrect information later creates difficulties with a claim.

Home insurance is designed to protect against specified risks, not every cost associated with owning or renting a property. Understanding what your policy does and does not cover can help you make a more informed decision.

This article provides general educational information for UK readers and is not personalised insurance advice.

Sources and Further Reading

• MoneyHelper — Home insurance: how to get the best deal — Guidance on buildings and contents cover, exclusions, excesses and optional features.
• MoneyHelper — Buildings insurance: what does a good policy look like? — Information about rebuilding costs and buildings insurance features.
• MoneyHelper — Contents insurance: what does a good policy look like? — Guidance on contents limits, valuable items and optional cover.
• MoneyHelper — What insurance do I need when buying a house? — Information about buildings insurance when buying a property.
• Financial Conduct Authority — Insurance — Official information about insurance and consumer protection.